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7/25, 3:00 PM (Source: TeleTrader)
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ECB rejects lowering target inflation rate: Draghi

"We don’t like what we see on the inflation front. Symmetry means we will act with the same determination whether inflation is above or below the inflation aim," the head of the European Central Bank stressed on Thursday at a press conference in Frankfurt. After it vowed to turn to interest rate cuts, net bond purchases and tiering for banks in the attempt to get price growth to recover, Mario Draghi said there was no discussion about the possibility to act today. He brushed away the possibility to lower the inflation goal and declined to elaborate on the intensity of possible measures.

The risk of recession is "pretty low," the top rate-setter claimed but acknowledged weaknesses in China's economy and fears of a disorderly Brexit. Draghi, whose mandate expires at the end of October, added the ECB wants to wait for more statistical data before deciding to act.

He also explained the symmetry strategy means there is no cap for inflation at 2%. Asked whether central bankers were unanimous in their views before issuing the statement, he asserted it was rather "a convergence of views."

Breaking the News / IT